TY - JOUR
AU - McCallum,Bennett T.
TI - Specification and Analysis of a Monetary Policy Rule for Japan
JF - National Bureau of Economic Research Working Paper Series
VL - No. 4449
PY - 1993
Y2 - September 1993
DO - 10.3386/w4449
UR - http://www.nber.org/papers/w4449
L1 - http://www.nber.org/papers/w4449.pdf
N1 - Author contact info:
Bennett T. McCallum
Tepper School of Business, Posner 256
Carnegie Mellon University
Pittsburgh, PA 15213
Tel: 412/268-2347
Fax: 412/268-6830
E-Mail: bm05@andrew.cmu.edu
AB - This paper investigates the performance, in several small-scale models of the Japanese economy, of an operational monetary policy rule related to ones previously considered for the United States. The rule dictates settings of the monetary base that are designed to produce values of nominal GNP close to targets that grow smoothly at a noninflationary rate. Simulations with quarterly data for the period 1972-1992 yield predominantly favorable results. Experiments with an interest rate instrument are also conducted but the simulated performance is less desirable. One section discusses issues concerning monetary base control in Japan.
ER -